New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-12
little attention

SECRET5RY FAIRCHILDS EAPERiAENI'
Secretary Faiichild's policy proves weak
inst where it was expected by intelligent OBJ
servers to be weak. Applications Tor pre-
navmcnt of interest are large, but that gives
a relief only temporary in its nature. Pro-
nosals for sale of bonds are much smaller than
some enthusiastic admirers of the Secretary
expected and nearly all of them at terms
which the Secretary does not f cl at liberty
to accept Out Of abont s., 800 900 offered
he accepted only 100000. But the appl-
cations for prepayment of interest amounted
to about $4,000, 900.
The prepayment of interest takes money ONT
of the Treasury now which would
otherwise come out September J..
October or December l. The
amount of interest payable on those
three dates is about $13O0O000 and the
applications show much more general desire
to get money for immediate use than has
appeared at similar opportunities hitherto
But what the country gains Is, alter all, ohly
the use of money some weeks or mollhS
sooner than the same amount would become
available in the natural course oil events.
Moreover the very fact that the appncanohS
cover bonds held in all parts of the country
shows that Wall Street is not likely to nave
the use of nearly the whole Of the money thus
discussed Being wanted by banks and cap
italjsts in Ncw-Engand the Central states,
the West and South, much of this money
Will be employed elsewhere than in tins CITY.
and largely in meeting obligations created
months ago in connection with new manu1act-
urcs and mines. new railroads and real estate
The part that comes into Wall Street Tor use
will nevcrthcl IS help to meet the usual &c
mand for crop-moving at this season.
The serious injury to important crops mas
its helpful side, in so far as 1T prevents inc
hasty marketing of crops by farmers who are
able to wait for better prices, and thus prob
ably lessons the early demand for money from
the East. But a speculative advance III prices
here. if pushed beyond the level OF 1oreiSh
prices. would tend to accelerate sales by lar
mcrs, and Of such an advance there are already
some premonitOry symptoms American
markets are apt to go to extremes, ana IL
woud not be strange if there should be
fluctuations as wide aud wild and harmful
rs those which followed the short Weld OF 1851.
The proposals to sell bonds are discourage
inc. At the end of June before the Score
tarys plan was M nOunccd, the four and-a han
per cents were selling at 100 3-S, and with
interest since accrued they would be worth
about no. the price which he consented To
nav for $3.50 600 But for all the rest offered.
the prices ranged from 1-2 to II higher,
which Is hardly evidence that many holders
are disposed to sell at terms which the Secrc-
tarv can afford to accept In the light Oh
this bidding IT is doubtful whether that feature
of the Sccctarys plan will prove Of much
service. and it is the only one through which,
if successful, he would be enabled to diminish
the surplus revenue except IN temporary
sense. The ability 10 anticipat, interest
payments with rebate is shown to be more
helpful than most financial authorities antlci-
pated. but if the Secretary finds no means
Of getting out of the Treasury more OF the
amount received by payment OF taxes than
he would in any case dsbursc within few
weeks or months, he viii have strong ground
10 appeal to his party at the next session OF
Congr SIS for q substantial reduction Oh the
taxes. Yet no one suppCScS that such al
appeal, to such party, is likely to be sue
cCsSful.